7.14 afternoon outlook: Gold sharply rebounds, surging by $50! A desperate fightback at the $4,000 level—reversal or just another bull trap?

Today’s gold price saw a cliff-like plunge, briefly falling below the $4,000 whole-dollar level, with a low around 3,983. Bearish sentiment was concentrated and released. In today’s Asia session, the bulls suddenly took charge: gold rebounded strongly from the lows, surging to a peak of $4,034 during the session. In the short term it climbed more than $50, showing a thrilling V-shaped reversal.

Technically, on the 10-minute timeframe, gold has rebounded strongly from the 3,983 low. It printed consecutive bullish candles, rallying to break above the $4,000 whole-dollar level. Near-term bullish momentum has been released sufficiently. The 4,035-4,040 area above is a heavy resistance zone and also the 38.2% Fibonacci retracement level of this leg down. Support to watch is the 4,000-4,005 range below. Currently the MACD has formed a bullish cross, but the KDJ has entered the overbought zone—watch for the risk of a pullback after a push higher.

Trading reference: Take partial shorts on rebounds in the 4,030-4,050 range, with targets at $4,000 and $3,980. $XAUT